Institution: After a near-soft landing for the economy, the Federal Reserve now faces a new threat of stagflation

ChainCatcher news, after the U.S. economy nearly approached a soft landing, the Federal Reserve now faces a series of more concerning situations. GSFM investment strategy advisor Stephen Miller stated that inflation is retreating; interest rates are declining; bond yields will decrease, all of which have led to a stock market boom.

He added that the Federal Reserve's forecast has now shifted to a mild stagflation scenario, but there are still many areas where things could go wrong. Transitory inflation may persist, and there are reasons to believe that the risk of sustained inflation is currently high. As governments adopt protectionist measures, the regression of globalization in commodity markets has intensified price pressures, and the structural trend of U.S. inflation is moving in an unfavorable direction. Immigration restrictions and the exit of the baby boomer generation from the labor market will also exacerbate inflation. He added that the current probability of a recession in the U.S. is about 50%.